Circular No. 05/2008/TT-BTC guiding the mechanism for managing loans from the Japan Bank for International Cooperation (JBIC) for the Project to Support and Develop Higher Education in Information Technology and Telecommunications, funded by the JBIC.

CIRCULAR

Guidelines for the management mechanism of loan capital for the ProjectSupporting and Developing Higher Education and Postgraduate Education in Information Technology and Telecommunications, funded by the Japan International Cooperation Agency (JICA)

Pursuant to Decree No. 134/2005/NĐ-CP dated November 1, 2005 of the Government promulgating the Regulation on Loan Management and Foreign Debt Repayment;

Pursuant to Decree No. 131/2006/NĐ-CP dated November 9, 2006 of the Government promulgating the Regulation on Management and Use of Official Development Assistance (ODA) Sources;

Pursuant to the Loan Agreement No. VNXIII-6 signed on March 31, 2006 between the Ministry of Finance representing the Socialist Republic of Vietnam and the Japan Bank for International Cooperation (hereinafter referred to as JBIC);

The Ministry of Finance issues guidelines for the management mechanism of JBIC loan capital for the Project Supporting and Developing Higher Education and Postgraduate Education in Information Technology and Telecommunications (hereinafter referred to as the Project) as follows:

Part I
GENERAL PROVISIONS

Article 1. Scope of Application:

These Circulars regulate the management and use of JBIC loan capital under Loan Agreement No. VNXIII-6 signed between the Ministry of Finance of the Socialist Republic of Vietnam and the Japan Bank for International Cooperation (JBIC), which provides financial support for the Project Supporting and Developing Higher Education and Postgraduate Education in Information Technology and Telecommunications.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

These Circulars apply to relevant management agencies and project beneficiaries including the Ministry of Finance, the Ministry of Education and Training, Hanoi University of Science and Technology, scholarship recipients from JBIC loan funds, and serving banks.

Hanoi University of Science and Technology may refer to these provisions when applying regulations for scholarship recipients from Japan International Cooperation Agency (JICA) grant funds and scholarships from related Japanese universities in connection with this Project.

3. Definitions:

2. The Sponsor is the Japan International Cooperation Agency (hereinafter referred to as JICA).

3.1. The financier is the Japan Bank for International Cooperation (abbreviated as JBIC).

3.2. The Agreement is the Credit Agreement No. VNXIII-6 signed on March 31, 2006 between the Ministry of Finance representing the Socialist Republic of Vietnam (the Borrower) and JBIC representing the Government of Japan (the Lender) agreeing that JBIC will provide a loan of 5,422,000,000 JPY to Vietnam (the Borrower) for investment in the Project.

3.3. The Memorandum of Understanding is the Memorandum signed on June 23, 2006 among representatives of JBIC in Hanoi, the Ministry of Finance,the Ministry of Education and Training, and Hanoi University of Science and Technology regarding the Project.

3.4. Scholarship is the amount of money provided by the Project to students studying abroad, including tuition fees, round-trip airfare, insurance fees, living allowances, and other expenses covered by JBIC loan funds.

3.5. Scholarship recipient is a student or researcher receiving scholarships from JBIC loan funds.

3.6. Partner university is the institution that will accept scholarship recipients from the Project.

3.7. Project Management Board is the management board established by the Ministry of Education and Training responsible for implementing the Project.

3.8. Consultant is the consulting organization selected by the Project Management Board through international bidding and contracted to assist the Project Management Board in managing, implementing, and supervising the use of loan funds.

3.9. Vietcombank (Vietnam Commercial Joint Stock Bank) is the bank entrusted by the Ministry of Finance to handle foreign exchange transactions, responsible for signing banking agreements with foreign parties based on the JBIC loan agreement.

3.10. State agencies are Ministries, People's Committees, government-affiliated agencies, or units established by Ministries, People's Committees, or government-affiliated agencies pursuant to establishment decisions.

4. Implementing body:

4.1. The Ministry of Education and Training is the main administrative body of the Project, responsible for ensuring the quality and effectiveness of ODA fund usage within the Project, and performing state management functions over programs and projects in accordance with the law. When required, it shall be responsible for reviewing and providing written comments on matters related to the Project within the prescribed time frame.

4.2. Hanoi University of Science and Technology is the main project body responsible for establishing a project management board to manage the use of funds in accordance with its functions as stipulated by Decree No. 134/2005/NĐ-CP dated November 1, 2005 on the Regulation on Loan Management and Foreign Debt Repayment and Decree No. 131/2006/NĐ-CP dated November 9, 2006 on the Regulation on Management and Use of Official Development Assistance (ODA) sources issued by the Government and commitments made in the signed credit agreement with JBIC.

5. Principles of Management:

5.1. Loan capital shall be managed in accordance with the State Budget Law and guiding documents thereof, as well as current state expenditure regulations.

The Ministry of Finance is responsible for repaying foreign debt when due (including both principal and interest).

5.2. The Project is funded by JBIC loans, non-reimbursable grants from JICA, counterpart funds from the state budget, and self-funded resources of Hanoi University of Science and Technology.

5.3. The management and use of funds for basic construction investment and educational expenses shall be carried out in accordance with the current state management regulations. The management and use of funds for overseas education scholarships from JBIC loan sources shall be implemented in accordance with these Circulars.

Part II
SPECIFIC PROVISIONS

1. Scope of Fund Usage and Budget Planning:

1.1. Scope of Fund Usage:

a) JBIC loan funds shall be used for the following purposes:

- Establishing a model information technology training program;

- Developing faculty;

- Purchasing equipment and books;

- Scholarships;

- Consulting services;

- Paying interest on JBIC loans during the drawdown period.

b) Counterpart funds shall be used for the following purposes:

- Project management costs;

- Taxes;

- Other project expenses not covered by JBIC funding.

1.2. The Ministry of Education and Training (Hanoi University of Science and Technology) shall prepare annual budget plans to ensure adequate, timely, and appropriate counterpart funds in line with the specified schedule in approved project documentation.

2. Financial Mechanism for Overseas Loan Funds:

2.1. The Project adopts a mixed financial mechanism, wherein:

a) The state budget allocation: the Project applies the state budget allocation mechanism for all project components except those related to overseas student education scholarships.

b) Budget portion for loan repayment: Scholarships granted to trainees studying abroad shall be subject to a loan repayment mechanism. The Ministry of Finance authorizes the Vietnam Development Bank to enter into a loan repayment contract with Hanoi University of Technology under the same conditions as those stipulated in the Agreement.

Hanoi University of Technology enters into a credit agreement with scholarship recipients studying abroad.

This budget portion shall be deemed as grant if the scholarship recipient works for state agencies after completing their course of study as stipulated in the training loan agreement.

c) In cases where additional scholarships from companies and partner schools related to the Project are provided, if students sent to study using these funds discontinue their studies or do not work for state agencies, the amount may be recovered by Hanoi University of Technology and used for the purpose of developing human resources at the university (unless otherwise bound or regulated by the funding sponsor).

2.2. Scholarship funding costs used as loan repayment capital in the Contract include:

a) Round-trip economy class airfare (based on actual expenses, tickets purchased by the Project Management Board).

b) Visa fees (based on actual expenses, reimbursed according to the method of refunding fees paid by the scholarship recipient for obtaining a visa, based on receipts from the Consular Office).

c) Tuition fees at the receiving institution for each case (based on the contract signed between the Project Management Board of Hanoi University of Technology and the partner university in Japan).

d) Living expenses: The living allowance for exchange students is approved by the Ministry of Education and Training on an equal basis with other programs and ensures necessary conditions for participants in the course.

đ) Health insurance: Applied according to the standard set forth in Program 322 Phase II (Government program using state budget to train human resources abroad) for scholarship recipients funded by JBIC.

e) Transfer fees: Based on actual expenses, according to bank documentation.

3. Selection mechanism and information dissemination:

3.1. Student selection:

Hanoi University of Technology conducts admissions to the Faculty of Information Technology and Telecommunications through the annual university admission mechanism as prescribed by the Ministry of Education and Training.

3.2. Selection of scholarship recipients:

a) Annual selection of scholarship recipients for overseas study under this Project is conducted by a Selection Committee established by Hanoi University of Technology based on selection criteria approved and publicly announced by the Ministry of Education and Training, based on reviewing scholarship application files of candidates.

b) Application files for scholarships, evaluation criteria, as well as the functions and responsibilities of the Selection Committee are defined by Hanoi University of Technology in accordance with the objectives and criteria of the Project. The Selection Committee may establish a Secretariat to assist in reviewing scholarship application files.

c) Results of the scholarship recipient selection are sent to the Sponsor and the Ministry of Finance before officially announcing on the Hanoi University of Technology's website.

3.3. Information dissemination:

a) Information about the Project, particularly scholarship regulations for training information technology human resources, is widely publicized through the university's communication channels so that students can access and choose.

b) All information related to application files, scholarship grant systems, rights and obligations of applicants is updated promptly and made public three months before the annual admission period through mass media and continuously on the university's website.

4. Loan Repayment Mechanism under the Scholarship Program:

4.1. Loan Repayment Contract between Hanoi University of Technology and the Ministry of Finance (through the Vietnam Development Bank):

The Ministry of Finance authorizes the Vietnam Development Bank to enter into a loan repayment contract with Hanoi University of Technology under the terms of the loan agreement signed with JBIC, specifically:

- Loan currency: Japanese Yen

- Interest rate: 1.4% per annum (including a 0.1% per annum management fee on the outstanding principal balance. In the event the loan is converted to a grant, the outstanding balance will be correspondingly reduced).

- Term: 30 years, including a 10-year grace period.

4.2. Loan Repayment for Scholarship Recipients:

a) Scholarship recipients sign a credit agreement with Hanoi University of Technology immediately upon receiving the scholarship decision, specifically:

- Interest rate: equal to the interest rate of the same term offered by Vietcombank at the time of granting the scholarship, interest calculated from the date of graduation.

- Term: 5 to 10 years (specifically determined by Hanoi University of Technology);

- During the study period, no interest is payable.

b) Hanoi University of Technology may directly or contract with a commercial bank to manage this scholarship fund, responsible for collecting debts from exchange students according to the system and entitled to fees agreed between Hanoi University of Technology and the serving bank. Fees for the bank are taken from the counterpart fund.

4.3. Exemption from Study Abroad Costs:

a) The condition for exemption from study abroad costs is that the scholarship recipient works for state agencies for a minimum period twice the duration of the scholarship received.

After completing the training program, scholarship recipients are encouraged to become information technology lecturers at public universities or work in state agencies and organizations in their field of study.

b) Before the end of the term specified in the credit agreement, scholarship recipients must provide Hanoi University of Technology with evidence to temporarily exempt study abroad costs, such as the employment decision of a state agency, and before the end of the term specified in the credit agreement, they must provide a salary list during the working period of the receiving agency or organization from the date of employment to the end of the commitment period in the loan repayment contract to officially exempt study abroad costs.

The monitoring and management of scholarship recipients after their study period abroad shall be undertaken by the Project Management Board of the Hanoi University of Science and Technology to implement the recovery or exemption of study abroad costs for each case.

c) In cases where students fail to complete their courses or, upon completion, cannot provide valid evidence that scholarship recipients have been exempted from fees, Hanoi University of Science and Technology shall be responsible for refunding the budget according to the conditions stipulated in the Rescheduling Contract with the scholarship recipient.

5. Methods of withdrawing funds and transferring money:

5.1. The methods of withdrawing funds that may be applied to this Project include:

a) Special account;

b) Letter of Commitment;

c) Transfer;

d) Advance Payment.

5.2. Regulations on the approval and execution of contracts to apply the above withdrawal methods:

The approval and execution of contracts shall comply with the regulations on contract approval stipulated in the Agreement and Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance "guidelines for financial management mechanisms for official development assistance (ODA) programs and projects."

5.3. Method of withdrawing funds from special accounts:

a) The method of withdrawing funds from special accounts applies to the following items:

- "Educational Services" under Component A of the Agreement using Special Account A;

- "Scholarships" under Component B of the Agreement using Special Account B;

- "Books for libraries" under Component C of the Agreement using Special Account C.

b) Specific provisions are implemented according to Appendix 1.

5.4. Method of withdrawing funds through Letters of Commitment: Applied to expenditures in foreign currency in consultancy contracts and equipment procurement contracts, carried out in accordance with Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance "guidelines for financial management mechanisms for official development assistance (ODA) programs and projects."

5.5. Method of withdrawing funds through Transfers: Applied to expenditures in Vietnamese Dong in consultancy contracts and equipment procurement contracts, carried out in accordance with Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance "guidelines for financial management mechanisms for official development assistance (ODA) programs and projects."

5.6. Method of withdrawing funds through Advance Payments: May be applied to payments to suppliers from the project's capital, which will then be reimbursed from the loan, carried out in accordance with Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance "guidelines for financial management mechanisms for official development assistance (ODA) programs and projects."

5.7. Withdrawal of funds through Statements of Expenditure (SOE):

The Statement of Expenditure (SOE) is not a method of withdrawing funds but can be used in conjunction with the above withdrawal methods without requiring proof of expenditure provided that these expenditures are legitimate for payment from JBIC funds.

The verification of the legitimacy of expenditures will be conducted by the State Treasury (pre-audit for each withdrawal from Accounts B and C, post-audit for withdrawals from Account A) and annual auditing services.

This method is applied when the Project anticipates numerous small expenditures, leading to difficulties in managing due to the need to collect many invoices and supporting documents.

The Project may apply the withdrawal of funds through Statements of Expenditure for items under special accounts.

The procedures for transferring money and additional withdrawals when applying Statements of Expenditure are detailed in Appendix 1.

6. Fees and interest incurred:

6.1. Types of fees and interest incurred include:

a) Service fees of Vietnam Bank for Foreign Trade: Vietnam Bank for Foreign Trade charges service fees according to its fee schedule issued by the Bank's General Director.

b) Service fees of other banks: paid based on the actual amount charged by other banks.

6.2. The collection of specific fees is carried out as follows:

a) For transfer fees when repaying foreign debt: Vietnam Bank for Foreign Trade automatically debits the National Budget deposit account (opened at Vietcombank).

b) For fees related to opening and paying import letters of credit, consultancy service fees, scholarship transfer fees, teacher salary transfers, supplier payments, and other expenses (if any): Vietnam Bank for Foreign Trade collects fees from the account opened by Hanoi University of Science and Technology at the bank, from the counterpart fund.

c) Management fees arising when Hanoi University of Science and Technology hires a bank to manage and monitor overseas students: agreed upon by Hanoi University of Science and Technology and the serving bank, paid from the university's counterpart fund.

7. Accounting into the State Budget

JBIC loans used for disbursement and rescheduling to the project must be fully and promptly recorded in the State Budget as follows:

For disbursed funds from the State Budget: based on the disbursement figures announced by JBIC, the Ministry of Finance (Department of Foreign Financial Affairs) issues a notification approving the budget, recording the receipt of foreign loan funds, and recording the disbursement to the Ministry of Education and Training for the project on Supporting and Developing Higher Education and Postgraduate Education in Information Technology and Telecommunications.

For rescheduled funds (scholarship training abroad portion): based on the withdrawal figures, the Ministry of Finance (Department of Foreign Financial Affairs) issues a notification approving the budget, recording the receipt of foreign loan funds, and recording the disbursement to the Development Bank for rescheduling to Hanoi University of Science and Technology. After the training period, if the rescheduled funds are converted to disbursements, the University will prepare a report requesting the Ministry of Finance to reduce the loan amount and increase the disbursement for the project.

Part III
RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS RELATED TO THE BUSINESS OF ELECTRONIC GAMES WITH PRIZES FOR FOREIGNERS

1. The Ministry of Finance shall be responsible for:

1.1. Guide the mechanism and policy for managing and utilizing loan funds for the Project.

1.2. Implement withdrawal procedures with JBIC as stipulated in the Agreement and this Circular.

1.3. Ensure timely repayment of foreign debt.

1.4. Record in the State Budget in accordance with the State Budget Law.

2. The Ministry of Education and Training is responsible:

2.1. Provide guidance on mechanisms and policies related to scholarship systems.

2.2. Perform the functions of the project management agency as prescribed in Decree No. 131/2006/NĐ-CP dated November 9, 2006, issued by the Government on the regulations for managing and using Official Development Assistance (ODA) funds, and Circular No. 03/2007/TT-BKH dated March 12, 2007, issued by the Ministry of Planning and Investment guiding the functions, tasks, and organizational structure of the ODA Program Management Board.

2.3. Participate in the Scholarship Selection Council of the Project.

2.4. Allocate counterpart funding for Hanoi University of Science and Technology to serve the Project.

3. Hanoi University of Science and Technology shall be responsible for:

3.1. Managing and monitoring the use of funds in accordance with their intended purpose, effectively and in compliance with relevant laws, and submitting for approval by the Ministry of Education and Training.

3.2. Negotiating and signing service provision contracts, basic construction contracts, and procurement contracts for goods and equipment in accordance with current regulations.

3.3. Maintaining records of teachers' working hours to facilitate payment of teachers' salaries.

3.4. Establishing a Scholarship Selection Council to ensure fair and appropriate scholarship distribution for training information technology human resources.

3.5. Updating information about the Project, particularly the scholarship program, through mass media and the university's website.

3.6. Accepting debt from the Development Bank for the loan component.

3.7. Implementing procedures related to disbursement methods.

3.8. Signing Credit Agreements with scholarship recipients. Monitoring and managing the recovery of debts from scholarship recipients.

3.9. Allocating sufficient and timely counterpart funding for the Project.

3.10. Engaging annual auditing services when expenditure disbursement procedures via Expenditure Statement (SOE) are applied, and reporting audit results to the sponsor, the Ministry of Finance, and the State Treasury.

3.11. Storing, providing documents, and supporting tracking, evaluation, and auditing of the Project.

4. The State Treasury shall be responsible for:

- Serve as the expenditure control authority for all Project expenditures in accordance with Circular No. 108/2007/TT-BTC dated September 7, 2007, issued by the Ministry of Finance, "guiding financial management mechanisms for ODA programs and projects."

5. Serving banks:

5.1. Vietnam Commercial Joint Stock Bank is responsible for implementing foreign exchange settlement procedures related to the Agreement, including disbursement, repayment of principal and interest on loans.

5.2. Vietnam Development Bank is responsible for managing and recovering loaned funds for the scholarship component for overseas students under specific terms stipulated in the Loan Assignment Contract between the Ministry of Finance and Vietnam Development Bank.

5.3. The serving bank authorized by Hanoi University of Science and Technology is tasked with monitoring and collecting debts from scholarship recipients.

6. Scholarship Recipients:

6.1. Shall be responsible for signing a Rescheduling Loan Agreement with Hanoi University of Science and Technology, promptly informing the Project Management Board of Hanoi University of Science and Technology about the duration of study abroad and place of employment to apply appropriate conditions.

6.2. Shall be responsible for opening an account at the bank (or branch) Tokyo-Mitsubishi to receive scholarships and living expenses.

Part IV
AUDITING, MONITORING, AND REPORTING WORK

1. Hanoi University of Science and Technology shall report on the implementation of the Project to the Ministry of Finance and the Ministry of Education and Training in accordance with Decision No. 803/2007/QĐ-BKH dated July 30, 2007, issued by the Ministry of Planning and Investment on the reporting system for the implementation of ODA programs and projects, and Circular No. 04/2007/TT-BKH dated July 30, 2007, issued by the Ministry of Planning and Investment guiding the implementation of the management and use of ODA funds.

2. Hanoi University of Science and Technology shall engage auditing services to conduct audits of the Project, especially expenditures from special accounts using the Expenditure Statement (SOE) procedure.

3. Hanoi University of Science and Technology shall provide project tracking documents and support the sponsor's and the Ministry of Planning and Investment's project evaluation when requested. Annually, Hanoi University of Science and Technology shall submit the Project audit report to the sponsor, the Ministry of Finance, the State Treasury, and the Ministry of Education and Training.

Part V
IMPLEMENTATION

This Circular shall take effect fifteen days after its publication in the Official Gazette. Relevant agencies involved in the management and implementation of the project shall be responsible for strictly implementing the provisions of this Circular. In the course of implementation, if there are any difficulties, the agencies shall promptly reflect them to the Ministry of Finance for study, amendment, and supplementation./.